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mandate is too essential to the nation’s welfare to leave 

so much of the machinery under the control of narrow 

private interests.

Concentration of economic and financial power in the United States 

has gone too far."

In a section of the text entitled "The Club System", the Committee 

noted:

"This ‘club’ approach leads the Federal Reserve to consistently dip into 

the same pools—the same companies, the same universities, the same 

bank holding companies--to fill directorships."

This Congressional study concludes as follows:

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"Many of the companies on these tables, as mentioned earlier, have 

multiple interlocks to the Federal Reserve System. First Bank Systems; 

Southeast Banking Corporation; Federated Department Stores; 

Westinghouse Electric Corporation; Proctor and Gamble; Alcoa; 

Honeywell, Inc.; Kennecott Copper; Owens-Corning Fiberglass; all 

have two or more director ties to district or branch banks.

In Summary, the Federal Reserve directors are apparently 

representatives of a small elite group which dominates much of the 

economic life of this nation." END OF CONGRESSIONAL REPORT.

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